Parsad

Careful with that reasoning. Taking a company from $1B to $2B may require a very different managerial skillset than taking a company from 0 to $1B. They may also be operating in very different environment. This same reasoning was applied to RIMs previous management. The problem is they kept doing what made them successful in the first place when they needed to do something completely different. I have seen companies fail because of this. Compare how Nokia has responded to the iPhone/Android threat to how RIM has responded to a good case study on this. Its not that management suddenly turned stupid. They did what was logical - relied on methods that were "tried and true". Of course. I think you have to take a look and examine what aspects of the business or environment has changed? Has Overstock's customer base or demographics changed? Has their retail niche of excess or closeout inventory changed? Has their competition changed? Are their competitors using a completely different form of sales? Does the existing management team have the skills to grow the business further? Are they still competitive on price, service, execution and shipping? Are they spending advertising dollars wisely, and with very specific targets in mind? Are general operating costs adequate...or are they too high? Is their inventory selection meeting the demands of their customer base? Is their core customer base growing? Do they have adequate independent oversight on the board? Are compensation incentives aligned with operational and shareholder interests? These are just a fraction of the questions you ask and run through to determine the strengthes and weaknesses of a business. And they change based on economic conditions, the competitive environment and simply over the passage of time. Evaluating a business is never static. What Prem may have seen in RIMM 2 years ago, could have changed far more rapidly than he ever expected. Or even what Steve Jobs saw in Apple ten years ago when he returned, could never have been imagined in less than a decade by virtually anyone else...maybe not even Jobs! That's why investing is as much art as science. You calculate risk to the best of your abilities...both tangible and intangible...and then you make your bet and analyze quarter by quarter, year by year to see what portion of your theories have changed. Cheers!

Hi Parsad, I've researched quite a bit about this company, and I like many things about it that have been mentioned about it on this thread. But what worries me is the recent drop in yoy sales, customer traffic, and customer orders, given that a major thesis is the sales growth rates, and especially given that in the same periods Amazon fared much, much better. I know that it's such a short period to measure, especially put up against 10 years of immense growth, but the 10% sales drop in the most important quarter of the year raises a red flag. It's hard to blame it on the Google penalty, given that it was resolved last summer. So anyway, I was wondering what your take is on this. Thanks I agree...it is a concern. Unfortunately, you cannot do anything unless you are actually running the company. You are going to have to factor the risk into your analysis. Our contention is that someone who grows a company from zero to $1.1B in revenue in ten years didn't suddenly become stupid. They still had $1.07B in sales over the last 4 quarters and nearly 25m customers...so it's either an operational miscalculation (inventory selection, pricing, service) or a marketing mistake (O.co, Google penalty, online and offline advertising). I think it was a little of both, but more on the marketing side. We'll have to see how they do quarter after quarter going forward, and if there is any improvement with the addtion of Tim Dilworth. Cheers!

Let me ask you guys something: Were you guys buying when the stock was below $6? Did you buy then because insiders were buying? If you answered yes to both questions, then you are correct to demand Moynihan buy shares. If you answered yes to the first question, and no to the second question, then why does it matter at $9.60 if Moynihan buys or not? They say that the CEO of a corporation is the company's best salesperson. So don't rely on their advice or actions...trust your own analysis! Cheers!

A franchisee in Washington is launching a food truck. They only have one restaurant in the Capitol, so probably smart. Cheers! http://www.cnbc.com/id/46878558

Relative to other large bank CEO's, and the amount of work that he had to do to turnaround BAC, it's a damn bargain! Plus his compensation is restricted to certain hurdles being met. Cheers!

Article on the price of natural gas. Cheers! http://www.cnbc.com/id/46885001

Seattle peaked in July 2007. Peaked in July 2007 and prices fell slightly, but did not fall like most parts of the U.S. until mid-2009. Cheers! Too many ex-pats like myself are going back to Cali. That would make sense. Some went to Australia too! ;D Cheers!

I second this request as I'm thinking of heading down and am also a first timer. The Omaha tourism website looks pretty bleak. Plenty! You can go to NFM, Borsheims, the Net Jets display on Saturday, Gorats or Piccolos, The Old Market Area (great restaurants & shops), catch an Omaha Royals game, visit Boys & Girls town, check out Buffett's house, go gamble in Council Bluffs at Harrah's or Ameristar, drive around and check out the architecture, go play golf at numerous golf courses, walk around the River...I'm sure there are a ton of other things people will tell you. Don't forget all the private parties between Berkshire sanctioned events. Cheers!

Seattle peaked in July 2007. Peaked in July 2007 and prices fell slightly, but did not fall like most parts of the U.S. until mid-2009. Cheers!

Thanks for the information guys! It's tough to get a read from Vancouver. I go to Seattle alot, so I check out how things are in Washington, but they got hit much later than the rest of the U.S., and they are still working their way through. Cheers!

Great advice! That's what I did too. By the way, you can always send a letter to MrB, because he's one of the guys you should have coffee with too! ;D Cheers!

Apparently, Xbox's use similiar to Apple TV is growing rapidly as well. Cheers! http://games.yahoo.com/blogs/plugged-in/hbo-comcast-come-xbox-360-182414016.html

Junto, in the Minne/St. Paul area, do you find that properties are selling faster in core market areas, or is it a broad increase in sales in all suburban areas too? I agree with your comments about the market decoupling. It could very well be that certain markets are picking up, and certain markets are in a depression-like state. You are getting bidding wars now in certain markets. It seems as though most people in the housing industry are tentatively optimistic. Cheers!

The only entertainment value I get from this show's glacial story line comes from yelling at the on-screen characters as they make consistently terrible choices. The show is just not realistic enough for me to tolerate... the zombie mayhem I can accept, but I can't suspend reality long enough to believe that there exists any random group of people who are collectively that stupid. For me, it's a toss up between Breaking Bad and The Wire for best TV series ever. VAL, have you ever been through a zombie apocalypse? No...nuff said! ;D Cheers!

The CEO of Toll Brothers has some comments on housing and their business. Cheers! http://www.cnbc.com/id/46872827

Francis' 2011 annual report is out. He discusses banks and TARP warrants, Europe, Chinese stocks and the Canadian housing market. Not all are in the Chou Associates Letter, so you may have to go through each one. He's also always got one really funny joke and this one does not disappoint. Cheers! http://www.choufunds.com/pdf/AR11.pdf

The Walking Dead seems to be moving away from the grimace fest it was under the previous showrunner. They also killed off their main antagonist in Shane. But I think they are now going to cover alot more of the material from the graphic comic, as the last episode alluded to a couple of big things for next season. I actually don't watch the show for the gore fest, but the character development...which I thought was pretty good. It didn't have to be zombies...it could have been any sort of contagion...and then you watch what these people do to those around them and what they become...good or bad! It just happened to be zombies in this comic! ;D But hands down, Game of Thrones is awesome and I'm pretty jacked up to watch the new season starting this weekend. When I'm not reading, then I'm watching sports or a few of these shows. Cheers!

I like Breaking Bad and watched Sopranos all the time. Mad Men is one of the most boring shows on television! ;D Watched the occasional episode of Oz. Watch The Wire when I can. I really liked Deadwood, but think Boardwalk Empire is a bit too plodding...great actors though. Was very disappointed by Luck! Had everything going for it, but incredibly slow paced except for the occasional racetrack scene. The best thing about Luck were the four gambling buddies, and the show had Nick Nolte and Dustin Hoffman! Cheers!

Article on BAC being downgraded from buy to neutral. That's not why I posted it though. I posted it because of the analyst report mentioned at the bottom of the article that said upside potential was limited at $7 in Q4 2011. ;D Cheers! http://blogs.barrons.com/stockstowatchtoday/2012/03/27/bank-of-america-downgraded-show-me-the-earnings-power/?mod=yahoobarrons

By the way, should warn anyone reading that there is a ton of nudity in Game of Thrones. I would say it is one of the more risque shows I've ever seen on television. But much of it fits the time and circumstance, so not ENTIRELY gratuitous! ;D Cheers!

Could be growth is partly to blame. They are probably ramping up the back office support and administrative expenses for future growth. Cheers!

Thanks Toronto! Yes, Game of Thrones is the best show I've seen since the first season of Lost. Absolutely terrific writing, sets, actors...stunning twists to the stories. Great show! Supposedly the second season is taking it up several notches. Cheers!

If you can find cheaper, that's great, but there are some people who just don't have the time to go to different sites. Also, some prefer to book directly through the hotel, because they feel more comfortable that way, rather than using their card online. We personally booked ours through Expedia, because they had a good deal on the flight and hotel combo a couple of months back. Cheers!

Comments by Shiller on housing. He's concerned that house prices have declined for 5 years, but doesn't know what way the psychology is shifting. What I like about Shiller is he's just plain honest. He gives you the facts, but then he says over and over...I don't know...I'm not predicting. Cheers! http://finance.yahoo.com/blogs/daily-ticker/shiller-housing-chance-bottom-suburban-prices-may-not-161914444.html;_ylt=Ahs9F9JK4GHx7ZXPYAII.aiiuYdG;_ylu=X3oDMTNyajBxbzFyBG1pdANGUCBUb3AgU3RvcnkgTGVmdARwa2cDZmM0OWE5NDktMWZkNC0zOWJjLTkyNWUtMDE4ZThkZTBjZTE3BHBvcwMyBHNlYwN0b3Bfc3RvcnkEdmVyAzk5N2Y3ZTgwLTc4MjgtMTFlMS1iZGJiLWYyMWFkOWFiMDU1Mw--;_ylg=X3oDMTFvdnRqYzJoBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3

For those that have not booked your hotel yet for Toronto, we have a block of rooms set aside at the Fairmont Royal York at $209 CDN per night. They will be available till March 30th. When you call, give them the room block code of "CORN0412". Cheers!